26/11 Anniversary: How Insurance Shields You Against Terror

By Adhil Shetty | November 24, 2017

Insurance helps you deal with emotional and financial setbacks. Let’s look at how insurance policies could help you deal with loss due to a terror act.

26/11 Anniversary: How Insurance Shields You Against Terror

Terror is an unpredictable threat which has the deadly potential to hurt anyone unannounced. Like many other countries of the world, India has also witnessed terror attacks of big magnitudes. The 26/11 Mumbai attack is one such example of an unprecedented attack. It took a heavy toll on life and property, affecting families and businesses alike.

It’s true that ‘terror has no religion, no name and no face’. It’s a global menace which doesn’t differentiate between a developed, developing or underdeveloped nation.

Acts of terrorism not only cause emotional trauma but can also set you back financially. You can cushion yourself and your family from such setbacks by getting the right insurance plan. Most insurance companies have specific clauses for risk covers for acts of terror in their policy documents. One has to read it carefully to know whether it covers you in such a situation.

Let’s check out how insurance policies can play a big role in a loss due to terror act.

Travel Insurance

No travel plan is complete without Travel Insurance, especially if you are travelling abroad. You must always ensure that your travel policy covers terror-related perils. While in a normal or a terror-related emergency, travel insurance covers risks such as baggage loss, flight delay, flight cancellation, trip cancellation, medical expenses, evacuation, etc., but the extent of cover is subject to inclusions and exclusions mentioned in the policy document.

So, you must read the fine print in the policy document before you buy it. Some policies specifically mention that it does not cover risks due to terror adversities. If you visit a country which is high on terror risk, then the insurance company may not cover the losses.

You may need to pay a slightly higher premium if you chose a policy that covers terror perils. But it can ensure a big relief when you travel long distances.

Health Insurance

Most Health Insurance policies cover medical emergencies that may arise due to a terrorism attack. Such injuries are considered as accidental injury and normally you won’t find difficulty in getting the financial support from the Health Insurance company.

Some premium health policies also provide safe evacuation facilities to customers in case of an emergency-like situation in a country. Normally health policies cover treatment cost within India, but there are some high-end policies which also covers treatment costs in the overseas location. You must check the policy document to find out restrictions related to overseas treatment.

Life Insurance

Almost every Life Insurance policy covers death risk caused due to a terror incident. One should keep in mind that insurance policies specifically mention that the insured person should not intentionally put his/her life in danger. If a person knows that there is a terror threat in some place and they put their lives in danger by visiting such place and dies, then the insurance company may deny giving the insurance money.

Home Insurance

Home Insurance covers the damage caused to your home and its contents in normal cases and if it’s mentioned in your policy document. But in the case of terror-related damages, the insurance company may deny covering such losses if it has enlisted terror perils in the exclusion list.

You must read the policy documents and be aware of the inclusions and exclusions. Some insurance companies provide risk cover for terror losses, but it may charge a higher premium for it. Any damage to common areas such as the passage, lift, etc. may not be covered by home insurance.

Some important insurance policies that you must invest in to mitigate the terror risk include a health policy, a life policy, an accidental risk cover and a travel insurance.

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About Adhil Shetty

Adhil Shetty is the Founder and serves as the Chief Executive Officer of BankBazaar.com. Adhil has a Master’s degree in International Relations with a specialization in International Finance and Business from Columbia University in the City of New York, and a Bachelor’s degree in Engineering from the College of Engineering Guindy, Anna University. Adhil is an expert in Personal Finance (Car loan/Home loan and personal loan) and he majorly consults on investment and spends rationalization for the Indian loan borrowers. His guidance is number based with real time interest rate calculations and hence useful for consumer’s real time query.

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